US regulators have approved the trans-Atlantic alliance among American Airlines, British Airways and Spanish national carrier Iberia.

European regulators have already paved the way for the trans-Atlantic alliance. BA and American Airlines will now merge their transatlantic wings, cooperating on ticketing and coordinating schedules.

Cooperation on flights would help the concerned airline to slash costs and face tough market conditions efficiently as these airlines have been struggling with falling number of passengers and industrial turbulence.

Rivals and watchdogs have expressed concerns over the alliance, claiming it would hurt competition. But, the US Department of Transportation said that it imposed numerous conditions to protect consumers and preserve competition.

The airlines will have to make landing and take off slots at London Heathrow airport available to rivals to allow them entry to on routes between London and New York, Dallas, Miami and Boston.

Virgin Atlantic’s president Sir Richard has criticized the approval for the trans-Atlantic alliance, saying millions of passengers on both sides of the Atlantic would suffer as the alliance would enjoy a monster monopoly.